Starbucks plans to close a number of underperforming stores and cut about 900 non-retail jobs.
The changes are tied to the company’s “Back to Starbucks” plan, which CEO Brian Niccol said is aimed at strengthening the coffee chain’s long-term growth.
As part of the plan, Starbucks said its overall company-operated store count in North America will decline by about 1% in fiscal year 2025, even as it continues to open new locations. The company expects to end the fiscal year with nearly 18,300 stores across the U.S. and Canada.
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Starbucks said the closures will affect stores where it cannot create the “physical environment” customers expect or where financial performance is lagging.
In addition to store changes, the company is eliminating about 900 non-retail positions and closing some open roles. Affected employees will be notified this week, Starbucks said, and offered severance packages.
"I know these decisions impact our partners and their families, and we did not make them lightly," Niccol said in a statement. "I believe these steps are necessary to build a better, stronger, and more resilient Starbucks that deepens its impact on the world and creates more opportunities for our partners, suppliers, and the communities we serve.
